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I'm having trouble with my assignment.  I am missing the two articles from ProQuest dat

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I'm having trouble with my assignment.  I am missing the two articles from ProQuest database portion of the assignment.

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Given the market structures as described in the video, identify at least two articles from the ProQuest database that highlight and discuss two of the biggest challenges facing financial managers today in these varied market structures. In a three- to five-page paper (excluding title and reference pages), summarize your findings from the articles. Include how market liquidity, competitiveness, and efficiency impact financial managers.  The paper should be formatted according to APA style as outlined in the Ashford Writing Center. Be sure to properly cite your two required articles resources using APA style.

Please add any original information/ details that you feel are important to the assignment. Attached is the first part of the assignment.


Running Head: Financial Management Challenges Challenges Facing Financial Managers in Varied Market Structures


Alonda Martin


BUS 650 Managerial Finance


Dr. Leon Daniel


January 9, 2017 Financial Management Challenges Introduction


A financial manager has the responsibility of ensuring the financial health of a firm by


analyzing data to advise leaders in the firm to make strategic decisions. With this job function,


an effective financial manager utilizes planning and forecasting to increase the firm?s


profitability (Byrd, Hickman, McPherson, 2013). Financial managers have different titles


depending on the industry in which they operate but the financial goal remains the same, which


are growth opportunities for the firm. Different market structures offer different challenges for


financial managers. The four types of market structures include perfect competition,


monopolistic competition, monopoly and oligopoly.


Perfect Competition


In a perfect competition market is when several conditions are achieved. First, buyers


and sellers are too many and too small for individual control over prices. Sellers offer no


differentiation but standardized in products; competitors can enter the market freely as well as


exit the market. According to the video, ?a perfect competition does not exist in the modern


world?. When products are the same in undifferentiated product markets, a slight reduction in


price would allow the firm to offer a better value proposition to potential buyers (Dougals,


2012). To gain a favorable market share in a perfect competition market, sellers would have to


diversify there product offerings which in turn would not be a perfect competition market


because the products offering are no longer homogeneous. Financial Management Challenges


Monopolistic Competition


A monopolistic competition market structure has many firms producing slightly different


products in the industry that has no barriers to entry (Byrd et al). A monopolistic competition


market occurs when a buyer places special emphasis on what they value most about the firm in


which they purchase goods. For example, lets say two coffee shops offers the same products


within a city and are in close proximity of each other. However, coffee shop A earns more money


then coffee shop B because some customers prefer the ambience at coffee shop A. Therefore,


since some customers place more value in the ambience of the coffee shop, then coffee shop A


will always sell more if that factor makes the difference. Because there are no barriers to entry,


other firms may become interested to enter the market and place a particular emphasis on what a


customer deems as valuable.




Monopolies occur when one seller of a particular product in an industry (Douglas, 2012).


Market entry in a monopoly is extremely difficult because one firm dominates the market and


can therefore control entry. Because the monopolist firm is the only firm in the market, the


market demand curve is the firm?s demand curve (Douglas, 2012). Take for instance, the


breakup of The Bell System breakup that occurred in 1984. The U.S. government bought an


antitrust lawsuit against the Bell System due to the large company monopolizing the telephone


and long distance market. This monopolization did not give customers adequate choices in


telephone services; therefore the government broke the company into smaller independent


entities. Financial Management Challenges


Since a monopoly has total control within an industry, a financial manager could face


challenges of setting prices too high for customers to purchase products. Ethical behavior can be


described as doing the right thing even when no one is watching. It would be very tempting for a


financial manager to an unethical approach to price setting because there is no competition to


make a better offer.




An oligopoly market exists when there are a few sellers in the industry, which creates


interdependence between the sellers. For instance, in the mid 1990s Microsoft and Apple


dominated the personal computer industry. When Microsoft released its Windows operating


system their value and earnings skyrocketed, whereas Apple was struggling with there Macintosh


operating system because of price and its lack of operating on any computer system like


Windows. Microsoft needed Apple to succeed in the industry because it was its nearest


competitor and if Apple did not survive Microsoft could be deemed as a monopoly. To keep


Apple thriving, Microsoft invested millions as well as signing a deal to install Windows on Apple


computers to keep the company alive.


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